Adopting Transitional Business Models in Small Fitness Businesses in Response to Business Disruptions

Abstract

The COVID-19 pandemic disrupted economies and societies around the world and forced many industries to rethink their operations. While the ambiguity in global economies and adapted modes of operation have considerably affected small businesses in the fitness industry, few insights have been provided into the adjustments that enabled these businesses to remain operational. This study hence adopts a qualitative approach to explore the adjustments made by small fitness businesses based on transitional business models during the COVID-19 pandemic. We conducted semi-structured interviews with key informants from small fitness businesses that had encountered restrictions and limitations due to the pandemic. The findings indicate that small fitness businesses chose a trial-and-error approach while developing their business model that allowed transitional adjustments in their value propositions as they developed resilience during the disruptions. Nevertheless, existing customers’ perceptions of service quality and loyalty served as an important buffer for ensuring customer retention.